News NVIDIA and Intel to Develop AI Infrastructure and Personal Computing Products

[Joe NYC]

While NVidia spends a lot on marketing, as a percentage of revenue, it's not so much.

How about giving $100 billion to OpenAI, to be their "preferred partner" for hardware purchases?

 

[jpiniero]

How about giving $100 billion to OpenAI, to be their "preferred partner" for hardware purchases?

Haha yeah. That was more to prolong the AI Bubble than anything else.

OpenAI is so going to IPO too, and people will eat it up. nVidia might not even lose money on the investment. That's probably right before the bubble pops.

 

[marees]

I

How about giving $100 billion to OpenAI, to be their "preferred partner" for hardware purchases?

In practice it is a 25% discount on Nvidia's GPU price to openAi

This should limit openAI sales to Broadcom & AMD

AMD is the biggest loser of recent Nvidia "deals"

 

[Joe NYC]

Haha yeah. That was more to prolong the AI Bubble than anything else.

OpenAI is so going to IPO too, and people will eat it up. nVidia might not even lose money on the investment. That's probably right before the bubble pops.

OpenAI needs to hurry up with the IPO, and do it when it still seems things are in an uptrend.

 

[Joe NYC]

I

In practice it is a 25% discount on Nvidia's GPU price to openAi

This should limit openAI sales to Broadcom & AMD

AMD is the biggest loser of recent Nvidia "deals"

Both smell of anti-competitive moves by a monopolist.

AMD needs to get its lawyers ready.

(edited)

 

[511]

Nvidia has done these deals with nearly every AI company

 

[LightningZ71]

Both smell of anti-competitive moves by a monopolist.

AMD needs to get its layers ready.

If it's something that AMD knows, it's LAYERS. They certainly sell enough X3D chips these days to be experts in the field...

 

[Joe NYC]

If it's something that AMD knows, it's LAYERS. They certainly sell enough X3D chips these days to be experts in the field...

lol, I need a more AI enabled spell / grammar checker...

 

[511]

Here is you AI MAX Grammer Check ™

 

[Saylick]

In practice it is a 25% discount on Nvidia's GPU price to openAi

This should limit openAI sales to Broadcom & AMD

AMD is the biggest loser of recent Nvidia "deals"

I think in reality, what's happening or will happen is OpenAI buys Nvidia GPUs using cash. This was going to be the case no matter what.

Nvidia takes the profit from selling GPUs to OpenAI and buys/invests it into OpenAI stock, which is not publicly traded. In essence, the GPUs Nvidia sold to OpenAI are now effectively paid by OpenAI in the form of cash + OpenAI stock. This preserves OpenAI's cash reserves to allow them to be solvent moving forward.

What does this mean for Nvidia in the long-run? It basically means they are trying to enable key players in the AI market so that the AI market can foster and grow, because without a large TAM, their own sales will wither and their sky-high valuation cannot be sustained.

 

[jpiniero]

Nvidia takes the profit from selling GPUs to OpenAI and buys/invests it into OpenAI stock, which is not publicly traded.

More or less. And then OpenAI will IPO just in time before the bubble bursts.

 

[Doug S]

Haha yeah. That was more to prolong the AI Bubble than anything else.

OpenAI is so going to IPO too, and people will eat it up. nVidia might not even lose money on the investment. That's probably right before the bubble pops.

Yep the bubble is now being propped up by a circle jerk. Nvidia buys a piece of OpenAI and the valuation of both goes up - Nvidia went up by more than the $100 billion they invested. That provides OpenAI with the cash to fulfill their deal with Oracle, which when announced caused the valuation of both to go up. Oracle will spend that money with Nvidia, which when it shows up in Nvidia's results will cause their valuation to go up. Nvidia doesn't need a return on their investment in OpenAI for this to pay off for Nvidia shareholders, at least if they get out before the whole house of cards collapses.

I think this kind of arrangement being necessary to prop things up suggests the bubble is in its terminal stages. OpenAI may no longer have time to file for and execute an IPO at this point.

 

[Doug S]

Is your stance that Nvidia does not spend money on advertising and market development? Everything we know about them points to massive spending for both advertising and market adoption.

Nvidia doesn't spend money on advertising their brand to consumers to make it a household name like Intel's was and probably still is. There is no "Nvidia inside" advertising campaign, or payments to OEMs for exclusivity like Intel's deal with Dell that made them Intel only for nearly two decades. That's what I was not talking about, not ordinary advertising of products.

 

[Saylick]

Nvidia doesn't spend money on advertising their brand to consumers to make it a household name like Intel's was and probably still is. There is no "Nvidia inside" advertising campaign, or payments to OEMs for exclusivity like Intel's deal with Dell that made them Intel only for nearly two decades. That's what I was not talking about, not ordinary advertising of products.

Nvidia is a household name now, but that's largely due to the AI boom.

Before that, Nvidia was just one of the many tech companies out there, but amongst the markets where Nvidia competes in, they definitely spend a ton of resources on marketing and promotion. "The Way Its Meant to Be Played", "RTX: ON", etc are all Nvidia marketing campaigns.

 

[adroc_thurston]

Before that, Nvidia was just one of the many tech companies out there, but amongst the markets where Nvidia competes in, they definitely spend a ton of resources on marketing and promotion. "The Way Its Meant to Be Played", "RTX: ON", etc are all Nvidia marketing campaigns.

Yeah they're really good at marketing and shipping halo configs consistently.

 

[Saylick]

Yeah they're really good at marketing and shipping halo configs consistently.

Basically. JHH/Nvidia have a major hard-on for the "if you're not first, you're last" philosophy. That and "never admit fault".

 

[adroc_thurston]

JHH/Nvidia have a major hard-on for the "if you're not first, you're last" philosophy

So does Lisa.
Just not in...
...graphics.

 

[Saylick]

So does Lisa.
Just not in...
...graphics.

I don't get that impression from Lisa. She doesn't appear to be as cutthroat and willing to throw partners under the bus as JHH.

 

[adroc_thurston]

I don't get that impression from Lisa

"Leadership %stuff%" is quite literally her catchphrase.

She doesn't appear to be as cutthroat and willing to throw partners under the bus as JHH.

Indeed, ego trips at AMD are outsourced to Senior Fellows.

 

[LightningZ71]

Instead of marketing, they should be paying for power generation. The AI boom is likely to go bust because they run out of power to build new data centers.

 

[coercitiv]

Nvidia doesn't spend money on advertising their brand to consumers to make it a household name like Intel's was and probably still is. There is no "Nvidia inside" advertising campaign

There is a continuous "Nvidia inside" campaign, it's just not advertised as such. In the past they even had the traditional type too:

Spoiler: The way it's meant to be played

Nowadays they have a more refined approach, surely you've seen their "RTX On - RTX Off" videos or the more aggressive "advertorials" such as this:

or payments to OEMs for exclusivity

They sure did try!

Over the years, Nvidia pushed a lot of senior engineering hours into supporting game developers. This was discussed extensively on the forum and other places.The same happened in the education sector, they made sure students and teachers have a paved way towards adopting CUDA. Students became engineers. Nvidia spent their market adoption money wisely, but they did spend quite a bit for both gaming and compute.

I would not underestimate the financial effort Nvida undertook to build their brand among consumers and professionals in the past two decades.

 

[poke01]

There is a continuous "Nvidia inside" campaign, it's just not advertised as such. In the past they even had the traditional type too:

Spoiler: The way it's meant to be played

View attachment 130832

Nowadays they have a more refined approach, surely you've seen their "RTX On - RTX Off" videos or the more aggressive "advertorials" such as this:
View attachment 130833


They sure did try!

Over the years, Nvidia pushed a lot of senior engineering hours into supporting game developers. This was discussed extensively on the forum and other places.The same happened in the education sector, they made sure students and teachers have a paved way towards adopting CUDA. Students became engineers. Nvidia spent their market adoption money wisely, but they did spend quite a bit for both gaming and compute.

I would not underestimate the financial effort Nvida undertook to build their brand among consumers and professionals in the past two decades.

ngl, a much smarter use of marketing than Intel ever did.

Nvidias moat is ease of use, when it works. You can do whatever you want with an AMD/Intel GPU but people like that easy switch.

 

[jpiniero]

Instead of marketing, they should be paying for power generation. The AI boom is likely to go bust because they run out of power to build new data centers.

Too bad they aren't spending that $100 billion on Fusion or something.

 

[adamge]

Instead of marketing, they should be paying for power generation. The AI boom is likely to go bust because they run out of power to build new data centers.

Musk found the loophole to solve all datacenter power requirements:

https://archive.ph/KW0kE

Order some turbine generators on a trailer. Connect to a natural gas pipe and run some extension cords into your building from the parking lot. No permits, no muss, no fuss.

 

[Joe NYC]

Musk found the loophole to solve all datacenter power requirements:

https://archive.ph/KW0kE

Order some turbine generators on a trailer. Connect to a natural gas pipe and run some extension cords into your building from the parking lot. No permits, no muss, no fuss.

Maybe they just need to add a taller chimney - smokestack.

In NYC, there are gas powered power plants right in the middle of the city, and they don't seem to be the problem.

Or the "problem" in Memphis is manufactured, to create political propaganda...